Boeing's Path to Recovery: Challenges and Opportunities in 2025

Boeing faces significant challenges in 2025 as it strives to recover from a period marked by safety incidents, labor conflicts, and financial difficulties. Kelly Ortberg has returned as CEO, tasked with restoring Boeing's reputation and stabilizing the company after a series of setbacks that have damaged its image. 

In 2024, production of the 737 MAX was temporarily halted due to a machinist strike. Although production resumed by the end of the year, Boeing continues to face restrictions imposed by the Federal Aviation Administration (FAA), which has been closely monitoring the company’s operations. These ongoing regulatory constraints, combined with quality issues that still need to be addressed, present a significant hurdle as Boeing aims to ramp up production to 38 units per month.

Boeing has also taken steps to strengthen its supply chain by initiating the buyback of Spirit AeroSystems, one of its key suppliers. However, this move has not fully resolved the company's supply chain issues, as component shortages and logistical difficulties continue to affect its operations. The company’s ability to stabilize this area will be critical to its overall recovery according to A21.

Financially, Boeing finds itself in a delicate position. In 3Q24, the company reported a US$5 billion loss and announced a 10% cut in its workforce to reduce costs. The company's primary financial goal is to stabilize by achieving a production rate of 38 units per month for the 737 MAX, which would help boost its revenues and improve its financial standing.

The company is also grappling with delays in the production of the 777X, which has been pushed back until 2026. This delay will result in a significant loss of income over the next few years and affect Boeing's competitiveness against Airbus, which has gained ground with successful models like the A321neo and A350.

Ongoing scrutiny by the FAA remains another significant challenge for Boeing. The agency’s close oversight limits the company’s ability to increase production and adds pressure to demonstrate that the necessary quality improvements have been implemented. This regulatory burden complicates Boeing's efforts to return to full production capacity.